Since the 1970s the US dollar has been the only currency used to buy and sell oil on the global market. Before 1971 The US dollar was bound to the gold standard. By 1966 foreign governments had over 14Billion dollars while the US only had 3Billion cover foreign holdings. As we all know in 1971 The “Nixon Shock” happened (look it up if you don’t know) and the US dollar became a debt based currency. (Look up “Fractional reserve banking”)

In 1973 the Nixon Organization stared negations with Saudi Arabia to establish the petro dollar recycling system. Under this the Saudi’s would only sell their oil in dollars and would invest majority of their excess oil profits into US banks and Capital markets the IMF would then use this money to facilitate loans to importers who were having difficulties covering the increase in oil prices, the payments and interest on these loans would of course be denominated in US dollars.

This went Petro Dollar went unchallenged until September 2000 when Husain decided to switch Iraq’s oil sales from Dollar to Euros. In 2003 once Iraq oil fields were until US Control they were immediately switched back to the dollar.

2004: Iran started making their own oil market which would not be tied to the US dollar.

2009: In February Gaddafi was named Chairman of the AU(African Union) and he immediately proposed the formation of a unified state with a single currency under the gold standard.

2011: CIA Moved into Libya to back militant groups to topple the government. Once the armories were looted the weapons were shipped via turkey to back the Syrian rebels.

2011: First Shipments of oil were sold by Iran under this new market in July. The US not being able to start a war, they used the UN to impose sanctions on the Iranian regime. They were unsuccessful in toppling the regime because of Russia’s assistance in bypassing US banking restrictions.

2013: Syrian Rebels launch chemical attacks on their own people to frame the Syrian government to get international support but were exposed by UN and Russian Investigators.

Russia has been in works with China to pull off the dollar and their bilateral trade and in making a Eurasia union with a common currency which is so going to have its own independent energy market.

In the wake of Ukrainian crisis, China has proposed a Eurasian pact which includes Russia and Iran. Iran has a mutual defense agreement with Syria.

Alliances are already solidifying, there are already wars on many fronts. How long before the proxy wars are over and the real one begins?

illIIlIHOLYIlIIlDOMOIlIlIIi wrote:You can isolate Russian and Iranian economy fairly easy I would think. Doing so would put pressure on China because China couldn’t support both of those economies for very long.